New Mexico § 59A-34-28 Mutual members, contingent liability

New Mexico Statutes

§ 59A-34-28 — Mutual members, contingent liability

New Mexico § 59A-34-28

Ch. 59AInsurance Code

Art. 34Domestic Stock and Mutual Insurers

This text of New Mexico § 59A-34-28 (Mutual members, contingent liability) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 59A-34-28 (2026).

Text

A.Except as to nonassessable policies as provided for in Section 577 [59A-34-31 NMSA 1978] of this article, each member of a domestic mutual insurer shall have contingent liability, pro rata and not one for another, for discharge of the insurer's obligation incurred while the member was a policyholder, which liability shall be in such maximum amount, not less than one nor more than six (6) times the premium for the member's policy at the annual premium rate, as specified in the insurer's articles of incorporation.

B.Every policy issued by the insurer shall contain a statement of the contingent liability.

C.Termination of the policy shall not relieve the member of contingent liability as to liabilities of the insurer incurred while the policy was in force.

D.Unrealized contingent liabil

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A. Except as to nonassessable policies as provided for in Section 577 [59A-34-31 NMSA 1978] of this article, each member of a domestic mutual insurer shall have contingent liability, pro rata and not one for another, for discharge of the insurer's obligation incurred while the member was a policyholder, which liability shall be in such maximum amount, not less than one nor more than six (6) times the premium for the member's policy at the annual premium rate, as specified in the insurer's articles of incorporation. B. Every policy issued by the insurer shall contain a statement of the contingent liability. C. Termination of the policy shall not relieve the member of contingent liability as to liabilities of the insurer incurred while the policy was in force. D. Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of financial condition.